The recent hack of the cryptocurrency exchange WazirX has witnessed a significant development. The hackers have transferred 2,600 ETH, worth approximately $6.5 million, to Tornado Cash, a cryptocurrency mixer that is under U.S. sanctions. This action, identified by the security firm PeckShield, is a common technique used by cybercriminals to obscure the trail of stolen funds and make it more challenging for authorities to trace and recover them.
On the 18th of July 2024, WazirX was struck by a severe cyberattack that saw the hackers make away with its multi-signature wallet. The breach even led to the loss of as much as $234 million. From this incident, one can readily conclude that the exchange has been greatly shaken in its ability to achieve a balance of its assets along with the corresponding collateral.
In this regard, WazirX has suspended withdrawals and trading operations since July 21 as it seeks to recover from the attack. The restructuring process in this context can translate into losses for users and even their inability to recover the full amount of their loss from the hacking attack on Finiko’s crypto.
Crypto Sector Faces Risks as Lazarus Group Linked to WazirX Hack
The hacking was attributed to the Lazarus Group, a cybercriminal organization that has been funded by the North Korean government. This group has been linked to large-scale cyber heists such as a 600 million dollars hack of the Ronin sidechain in 2022. Through affiliation with the Lazarus Group, such an attack would likely pose threats to the development of the cryptocurrency sector if it occurred on a large scale.
With WazirX facing the long-term consequences of the hack, the focus is on trying to retain as much user data as possible and providing support where necessary to mitigate the financial hit for the users.
